Cyclical movements in hours and effort under sticky wages

Marks Bils; Yongsung Chang

doi:10.1080/10168730100000033

Cyclical movements in hours and effort under sticky wages

Marks Bils, Yongsung Chang

Department of Economics

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

We examine the response of a sticky-wage economy to various real and nominal shocks. In addition to variations in hours, we allow for an endogenous response in worker effort per hour. Despite wages being predetermined, the labor market clears through the effort margin. We find that the ability of a sticky-wage model to mimic U.S. business cycles is much improved by allowing for reasonable effort movements. The model also provides a ready explanation for the finding that TFP is negatively affected by nominal shocks. [E24].

Original language	English
Pages (from-to)	1-26
Number of pages	26
Journal	International Economic Journal
Volume	15
Issue number	2
DOIs	https://doi.org/10.1080/10168730100000033
Publication status	Published - 2001 Jun

All Science Journal Classification (ASJC) codes

Economics, Econometrics and Finance(all)

Access to Document

10.1080/10168730100000033

Cite this

@article{3ecd1220364b46d494a4a5bf877031a3,

title = "Cyclical movements in hours and effort under sticky wages",

abstract = "We examine the response of a sticky-wage economy to various real and nominal shocks. In addition to variations in hours, we allow for an endogenous response in worker effort per hour. Despite wages being predetermined, the labor market clears through the effort margin. We find that the ability of a sticky-wage model to mimic U.S. business cycles is much improved by allowing for reasonable effort movements. The model also provides a ready explanation for the finding that TFP is negatively affected by nominal shocks. [E24].",

author = "Marks Bils and Yongsung Chang",

year = "2001",

month = jun,

doi = "10.1080/10168730100000033",

language = "English",

volume = "15",

pages = "1--26",

journal = "International Economic Journal",

issn = "1016-8737",

publisher = "Routledge",

number = "2",

}

TY - JOUR

T1 - Cyclical movements in hours and effort under sticky wages

AU - Bils, Marks

AU - Chang, Yongsung

PY - 2001/6

Y1 - 2001/6

N2 - We examine the response of a sticky-wage economy to various real and nominal shocks. In addition to variations in hours, we allow for an endogenous response in worker effort per hour. Despite wages being predetermined, the labor market clears through the effort margin. We find that the ability of a sticky-wage model to mimic U.S. business cycles is much improved by allowing for reasonable effort movements. The model also provides a ready explanation for the finding that TFP is negatively affected by nominal shocks. [E24].

AB - We examine the response of a sticky-wage economy to various real and nominal shocks. In addition to variations in hours, we allow for an endogenous response in worker effort per hour. Despite wages being predetermined, the labor market clears through the effort margin. We find that the ability of a sticky-wage model to mimic U.S. business cycles is much improved by allowing for reasonable effort movements. The model also provides a ready explanation for the finding that TFP is negatively affected by nominal shocks. [E24].

UR - http://www.scopus.com/inward/record.url?scp=0012487946&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0012487946&partnerID=8YFLogxK

U2 - 10.1080/10168730100000033

DO - 10.1080/10168730100000033

M3 - Article

AN - SCOPUS:0012487946

SN - 1016-8737

VL - 15

SP - 1

EP - 26

JO - International Economic Journal

JF - International Economic Journal

IS - 2

ER -

Cyclical movements in hours and effort under sticky wages

Abstract

All Science Journal Classification (ASJC) codes

Access to Document

Other files and links

Fingerprint

Cite this